Dynamic agricultural supply response under economic transformation: A case study of Henan province
China has experienced dramatic economic transformation and is facing the challenge of ensuring steady agricultural growth. This study examines the crop sector by estimating the supply response for major crops in Henan province from 1998 to 2007. We use a Nerlovian adjustment adaptive expectation mod...
| Autores principales: | , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2010
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/154296 |
| _version_ | 1855517653124251648 |
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| author | Yu, Bingxin Liu, Fengwei You, Liangzhi |
| author_browse | Liu, Fengwei You, Liangzhi Yu, Bingxin |
| author_facet | Yu, Bingxin Liu, Fengwei You, Liangzhi |
| author_sort | Yu, Bingxin |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | China has experienced dramatic economic transformation and is facing the challenge of ensuring steady agricultural growth. This study examines the crop sector by estimating the supply response for major crops in Henan province from 1998 to 2007. We use a Nerlovian adjustment adaptive expectation model. The estimation uses dynamic Generalized Method of Moments (GMM) panel estimation based on pooled data across 108 counties. We estimate acreage and yield response functions and derive the supply response elasticities. This research links supply response to exogenous factors (weather, irrigation, government policy, capital investment, and infrastructure) and endogenous factors (prices). The significant feature of the model specification used in the study is that it addresses the endogeneity problem by capturing different responses to own- and cross-prices. Empirical results illustrate that there is still great potential to increase crop production through improvement of investment priorities and proper government policy. We confirm that farmers respond to price by both reallocating land and more intensively applying non-land inputs to boost yield. Investment in rural infrastructure, human capacity, and technology are highlighted as major drivers for yield increase. Policy incentives such as taxes and subsidies prove to be effective in encouraging grain production. |
| format | Artículo preliminar |
| id | CGSpace154296 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2010 |
| publishDateRange | 2010 |
| publishDateSort | 2010 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1542962025-11-06T05:28:29Z Dynamic agricultural supply response under economic transformation: A case study of Henan province Yu, Bingxin Liu, Fengwei You, Liangzhi models elasticities farm area yield response factor China has experienced dramatic economic transformation and is facing the challenge of ensuring steady agricultural growth. This study examines the crop sector by estimating the supply response for major crops in Henan province from 1998 to 2007. We use a Nerlovian adjustment adaptive expectation model. The estimation uses dynamic Generalized Method of Moments (GMM) panel estimation based on pooled data across 108 counties. We estimate acreage and yield response functions and derive the supply response elasticities. This research links supply response to exogenous factors (weather, irrigation, government policy, capital investment, and infrastructure) and endogenous factors (prices). The significant feature of the model specification used in the study is that it addresses the endogeneity problem by capturing different responses to own- and cross-prices. Empirical results illustrate that there is still great potential to increase crop production through improvement of investment priorities and proper government policy. We confirm that farmers respond to price by both reallocating land and more intensively applying non-land inputs to boost yield. Investment in rural infrastructure, human capacity, and technology are highlighted as major drivers for yield increase. Policy incentives such as taxes and subsidies prove to be effective in encouraging grain production. 2010 2024-10-01T14:00:41Z 2024-10-01T14:00:41Z Working Paper https://hdl.handle.net/10568/154296 en Open Access application/pdf International Food Policy Research Institute Yu, Bingxin; Liu, Fengwei; You, Liangzhi. 2010. Dynamic agricultural supply response under economic transformation: A case study of Henan province. IFPRI Discussion Paper 987. https://hdl.handle.net/10568/154296 |
| spellingShingle | models elasticities farm area yield response factor Yu, Bingxin Liu, Fengwei You, Liangzhi Dynamic agricultural supply response under economic transformation: A case study of Henan province |
| title | Dynamic agricultural supply response under economic transformation: A case study of Henan province |
| title_full | Dynamic agricultural supply response under economic transformation: A case study of Henan province |
| title_fullStr | Dynamic agricultural supply response under economic transformation: A case study of Henan province |
| title_full_unstemmed | Dynamic agricultural supply response under economic transformation: A case study of Henan province |
| title_short | Dynamic agricultural supply response under economic transformation: A case study of Henan province |
| title_sort | dynamic agricultural supply response under economic transformation a case study of henan province |
| topic | models elasticities farm area yield response factor |
| url | https://hdl.handle.net/10568/154296 |
| work_keys_str_mv | AT yubingxin dynamicagriculturalsupplyresponseundereconomictransformationacasestudyofhenanprovince AT liufengwei dynamicagriculturalsupplyresponseundereconomictransformationacasestudyofhenanprovince AT youliangzhi dynamicagriculturalsupplyresponseundereconomictransformationacasestudyofhenanprovince |